starhub 3q-2011 resultsir.starhub.com/formbuilder/_resource/_module/gzsllgdlcu638zpq… · hubbing...
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StarHub 3Q-2011 Results
9 November 2011
Fo r ward - lo o k ing S tate m e nts
The following presentation may contain forward-looking statements by StarHub Ltd (“StarHub”) relating to financial trends for future periods. Some of the statements in this presentation which are not historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses, and related plans and objectives. These forward-looking statements are based on StarHub’s current views, intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside StarHub’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks and uncertainties. Because actual results could differ materially from StarHub’s current views, intentions, plans, expectations, assumptions and beliefs about the future, such forward-looking statements are not and should not be construed as a representation, forecast or projection of future performance of StarHub. It should be noted that the actual performance of StarHub may vary significantly from such statements.
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M anage m e nt Te am
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Neil MONTEFIORE CEO
KWEK Buck Chye CFO
TAN Tong Hai COO
3Q2011 Highlights
Financial Overview
Business Highlights
FY2011 Outlook
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
A ge nda
3Q2011 Highlights
Financial Overview
Business Highlights
FY2011 Outlook
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
O ve r v iew ( 3 Q - 2 0 1 1 vs 3 Q - 2 0 1 0 )
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Financial:
Operating revenue increased 4% EBITDA margin at 30.8%
Operational:
Mobile growth: Post-paid revenue (6%)
Total customer base (2%) Low churn (1.1%)
Pay TV revenue up 1%
Residential broadband revenue up 3%
Key F inanc ia l H ig h l ig hts
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Operating Revenue 572 552 4% 1,699 1,679 1%
Service Revenue 543 534 2% 1,613 1,606 0%
EBITDA 167 172 -3% 491 432 14%
EBITDA Margin 30.8% 32.3% -1.5% pts 30.4% 26.9% 3.5% pts
Taxation (17) (19) 11% (47) (42) -12%
Net Profit After Tax 76 82 -8% 223 183 22%
Capex Cash Payments 46 72 36% 130 165 21%
% of Capex to Revenue 8 13 5% pts 8 10 2% pts
FCF / Fully Diluted Share 8.6¢ 4.6¢ 89% 24.4¢ 17.9¢ 36%
Net Debt to 2010 EBITDA ratio 0.71x 0.99x 0.28x 0.71x 0.99x 0.28x
S$ million 3Q-2011 3Q-2010 Change YTD-2011 YTD-2010 Change
Business Expansion ( 3 Q - 2 0 1 1 vs 3 Q - 2 0 1 0 )
Line of Business Service Revenue Customer Base
Post-paid (6%) Pre-paid (-9%) Post-paid (3%) Pre-paid (1%)
Data & Internet (-4%) Voice (-7%)
Pay TV
(16% of revenue mix)
Broadband (11% of revenue mix)
Fixed Network Services
(14% of revenue mix)
1%
(4) %
3% 2% (54% of revenue mix)
Mobile
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3%
1%
6%
H ubbing S co re card
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3Q-2010 3Q-2011
352 343
242 243
197 206
Single Service HH Triple Service HH Double Service HH
793K 791K
57% 55%
5%
E x p a n d i n g H u b b i n g H o u s e h o l d s ( ‘ 0 0 0 )
Note: Numbers may not add up due to rounding.
Financial Overview
3Q2011 Highlights
Business Highlights
FY2011 Outlook
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011 YTD-2010 YTD-2011
172 170 160 164 167
432
491
E B I TDA & E B I TDA M arg in
11
(S$ millions) 30.4%
26.9%
30.8% 32.3%
EBITDA Margin as % of Service Revenue
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011 YTD-2010 YTD-2011
61 76 84 88 84
237 256 74
73 71
72 75
266 218
67 61 62 61 61
201 184
Cost of Services Cost of Sales / Revenue
12
220
Note: Numbers may not add up due to rounding.
C o st O f S a le s
(S$ millions)
221
703
658
39% 42%
202 210 216
Traffic Expenses Cost of Equipment
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011 YTD-2010 YTD-2011
65 70 69 68 70
189 207 145 145 143 144 147
428 434
35 37 43 44 42
119 128
Other G&A Operating Expense / Revenue
13
(S$ millions)
245
45% 44%
Note: Numbers may not add up due to rounding.
O the r O pe rat ing E x pe ns e s
259
770 736
252 254 256
Marketing & Promotion Depreciation
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011 YTD-2010 YTD-2011
107 100 91 96 97
243
283
14
(S$ millions)
P ro f i t F ro m O pe rat io ns
Note: Numbers may not add up due to rounding.
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011 YTD-2010 YTD-2011
82 80
69 78 76
183
223
15
(S$ millions)
N et P ro f i t A f te r Tax
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011 YTD-2010 YTD-2011
72
107
41 42 46
165
130
16
(S$ millions)
C apex ( cas h pay m e nts )
Note: Numbers may not add up due to rounding.
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011 YTD-2010 YTD-2011
78 89
132 140 148
308
420
17
(S$ millions)
F re e C as h F lo w
Business Highlights – Mobile
3Q2011 Highlights
Financial Overview
FY2011 Outlook
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
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M o bi le ( 3 Q -2 0 1 1 vs 3 Q -2 0 1 0 )
Added 49k customers Post-paid customer base expanded 3%
Post-paid ARPU increased $2 to $74
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
30
12
(5)
20
8
20
M o bi le N et A dds
Post-paid Net Adds (‘000)
Pre-paid Net Adds (‘000)
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
1024 1036 1031 1051 1059
1097 1109 1114 1102 1111
2,145 2,121 2,153 2,145 2,170
Customers (‘000)
51%
49%
Pre-paid Post-paid
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
35
135
(12)
9
Note: Numbers may not add up due to rounding.
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
67.465.5
64.1 63.361.7
21
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
230.9 237.2 231.5 239.2245.7
80%
20%
M o bi le Revenue & A RP U
Pre-paid Revenue (S$M)
Post-paid Revenue (S$M)
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
21 20 20 20 19
Pre-paid ARPU (S$ per month)
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
72 73 72 73 74
Post-paid ARPU (S$ per month)
22
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
35.7 36.2 36.8 37.5 38.4
M o bi le No n -Vo ic e & C hur n Trend
Post-paid non-voice services (% of ARPU)
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
1.0 1.1 1.1 1.0 1.1
(%)
Monthly Churn Rate (Post-paid)
Business Highlights – Pay TV
3Q2011 Highlights
Financial Overview
FY2011 Outlook
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
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Pay TV ( 3 Q -2 0 1 1 vs 3 Q -2 0 1 0 )
Added 5k customers ARPU at $50
25
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
(4)
1
4
1
Pay TV Net Adds
Net Adds (‘000)
528
(99.6%)
Customers (‘000)
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
537 538 542 544 542
(2)
Note: Numbers may not add up due to rounding.
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3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
92.4 91.8 91.6 92.3 93.4
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
49* 48 49 49 50
Pay TV Revenue & A RP U
Pay TV Revenue (S$M) Pay TV ARPU (S$ per month)
*Excluding additional ARPU from 2010 FIFA World Cup .
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3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
1.2 1.2
1.1 1.1
1.2
Pay TV C hur n
A v e r a g e M o n t h l y C h u r n R a t e ( % )
Business Highlights – Broadband
3Q2011 Highlights
Financial Overview
FY2011 Outlook
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
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B ro adband ( 3 Q - 2 0 1 1 vs 3 Q - 2 0 1 0 )
Added 26k customers ARPU at $45
Revenue increased 3%
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
4
10
2
7
30
Res ident ia l B ro adband Net A dds
Net Adds (‘000)
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
412 422
425 431 438
Customers (‘000)
7
Note: Numbers may not add up due to rounding.
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3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
58.3 59.0 59.9 61.0 60.2
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
46
45
46
45 45
Res ident ia l B ro adband Revenue & A RP U
Broadband Revenue (S$M) Broadband ARPU (S$ per month)
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3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
1.2
1.1
1.3
1.1 1.1
Res ident ia l B ro adband C hur n
A v e r a g e M o n t h l y C h u r n R a t e ( % )
Business Highlights – Fixed Network Services
3Q2011 Highlights
Financial Overview
FY2011 Outlook
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
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F i xe d N e t wo r k S e r v i c e s ( 3 Q - 2 0 1 1 v s 3 Q - 2 0 1 0 )
Revenue decreased 4% Stable revenue contribution from Data & Internet services
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3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
13.9 14.4 13.4 14.612.9
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
71.2 70.6 70.268.8 68.8
3Q-2010 4Q-2010 1Q-2011 2Q-2011 3Q-2011
85.1 85.0 83.6 83.4 81.7
F ixed Netwo r k S er v ic es
Fixed Network Revenue (S$M)
Voice (S$M)
Data & Internet (S$M)
FY2011 Outlook
3Q2011 Highlights
Financial Overview
Business Highlights
3Q2011 Highlights Financial Overview Business Highlights FY2011 Outlook
Revenue: Maintain revenue growth at low single-digit range
EBITDA: Maintain EBITDA margin on service revenue to be about 30%
CAPEX: Maintain cash capex to not exceeding 12% of operating revenue
Dividend: Declare 3Q-2011 interim dividend of 5.0 cents per share
For FY2011, maintain cash dividend of 5.0 cents per ordinary share per quarter
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F Y 2 0 1 1 O ut lo o k
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For enquiries, please contact:
Jeannie ONG Eric LOH
Head, Corporate Communications & Investor Relations
Senior Manager,
Investor Relations
Office: (65) 6825 5168 Office: (65) 6825 5171
Email: [email protected] or [email protected]
Email: [email protected] or [email protected]